View more on these topics

Treasury pours cold water on independent pension commission

The Treasury has said it will not bow to pressure from the industry to set up an independent commission to oversee future pensions policy.

Since last October, AJ Bell chief executive Andy Bell has written to several members of the Government, including the Chancellor and the pensions minister, calling for a non-partisan group like the Turner Commission, which studied the impact of auto-enrolment, to review the existing pension tax system and set a more long-term approach to policy.

The group would include figures from across different industries with the goal of setting key pension tax relief rules that would be frozen for ten years, echoing calls by others such as The Scottish National Party for a new independent commission to investigate actions taken by savers since the launch of the pension freedoms.

In a response to Bell’s letter, Treasury financial secretary Jane Ellison writes: “As you are aware, an extensive consultation was conducted last year which considered changes to the pensions tax framework. This concluded that now is not the right time to undertake significant reform.”

“Given this, the Government does not think it is necessary to convene an independent pensions commission at this time.”

However, the response, dated 2 March, pre-dates the Budget and Chancellor Philip Hammond’s subsequent U-turn on increasing National Insurance Contributions for the self-employed.

Treasury sources have since suggested that Chancellor Phillip Hammond is eyeing cuts in pension tax relief to fill the £2bn funding shortage left by his U-turn

Bell says: “While the Chancellor has not been able to resist tinkering completely through the unnecessary cut to the Money Purchase Annual Allowance, hopefully the Treasury’s response to us gives people some comfort it will not subject pensions to more unnecessary uncertainty, at least during this Parliament. If the Government does turn its attention back to higher rate pensions tax relief, it will seriously undermine its credibility.”



Pension tax relief back on table after NICs u-turn

Chancellor Philip Hammond is said to be favouring a cut in the annual pension allowance over a flat rate system as pension tax relief reform appears to be back on the table. Pensions are in the firing line after the Government dropped its planned rise to national insurance contributions for the self-employed last week, and […]


AJ Bell calls for Turner-style body for pension tax relief

AJ Bell chief executive Andy Bell has written to the Chancellor calling for a new independent Pension Tax Commission to carry out a root and branch review of pension tax relief. Bell is calling for a non-partisan group like the Turner Commission, which studied the impact of auto-enrolment, to review the existing pension tax system. […]


BBC presenters in High Court tax battle

Three BBC newsreaders are fighting attempts by HM Revenue & Customs to make pay back nearly £1m in unpaid income tax and national insurance. The Financial Times reports the three presenters – Joanna Gosling, David Eades and Tim Willcox – claim they were forced to set up personal service companies, rather than going on the […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]

Inheritance tax when it is relevant

Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Its not just the MPAA that has changed.
    The Alternative Annual Allowance under DB scheme contributions has gone UP to £36k – reflecting the MPAA drop.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm